Frequently Asked Questions
Questions from Investors
Only accredited investors whose status we have verified. You'll find the qualifying tests, and how verification works, on our Investors page.
Yes, for shares in our trusts, which are structured to qualify as replacement property for a 1031 exchange. Investments in a community while it is still being built — such as Americana before it is fully leased — do not qualify. Your qualified intermediary and tax advisor should confirm how the rules apply to your particular exchange.
Where a program offers it, you can choose to reinvest your returns in one of our trusts. But reinvesting does not defer the tax on those returns: distributions and gains are taxed when earned, and interests in a fund or partnership can't be used in a 1031 exchange. What reinvestment does is place that capital where future gains may be deferred — through the Section 721 exchange at the end of the trust's term and, under current law, a potential step-up in basis for heirs. Your tax advisor should confirm how this applies to you.
Generally, no. Trust shares can't be redeemed, and there is no real market for selling them to someone else. You should plan to hold your shares until the trust reaches the end of its term.
The property is sold and the proceeds are paid out to investors — and you can reinvest your share through a new 1031 exchange if you wish. Alternatively, where the tax rules allow, you can choose to exchange your shares for units in RREI's fund for that type of property.
That depends entirely on your circumstances. Keep in mind that the move is permanent — fund units can't be used in a future 1031 exchange — and that the fund is private, with limited ways to withdraw money. It's a decision to discuss with your tax advisor well before the trust ends.
No. Each of our businesses has its own fund. Moving into a fund spreads your investment across many properties of the same type, not across different types of property.
No — our trusts own their properties outright. Active adult communities use a construction loan while they're being built, but that loan is repaid in full before the community enters a trust.
Questions from Property Owners
Select-service and limited-service hotels flying Marriott, Hilton, IHG or Hyatt flags, generally eight years old or younger; and outpatient medical buildings and surgery centers worth $5 million to $20 million, leased long-term.
The move into the trust itself is structured so that it doesn't trigger tax. You pay tax on your gain as shares of the trust are sold to investors, over the sales period. Your accountant and attorney should confirm how this applies to your situation.
Yes. A hotel owner's operating company becomes the master tenant and keeps running the hotel. A medical practice becomes a long-term tenant under a lease agreed before the sale.
General information only; not tax, legal or investment advice. Offerings are made only through offering documents, and only to verified accredited investors.